Indonesia: Semen Bosowa sets aside US$500m for expansion

Semen Bosowa is setting aside US$500m this year to expand capacity in anticipation of a pick-up in demand across the country.

The company is building cement plants in Maros (South Sulawesi), Ciwandan (Banten), Banyuwangi, (East Java), Rembang, (Central Java) and Sorong (West Papua). The plants would boost the group’s cement production capacity to 12Mta over the next three years from 3Mta of present.

“Bosowa is expanding because we see the cement industry growing,” group chief executive Erwin Aksa told the Jakarta Globe.

Last year, domestic cement sales increased by 3.3 per cent YoY to 59.9Mt, falling short of the Indonesia Cement Association’s (ASI) target of 3.5-4 per cent. However, the industry body has said that cement demand growth rates could return to 5-6 per cent level, with hopes that the new government will speed up the growth of infrastructure projects.